A 90-Day,10% Note for $10,000 Dated April 1 Is Received

question 95

Multiple Choice

A 90-day,10% note for $10,000 dated April 1 is received from a customer on account.The face value of the note is:

• A)$10,000.
• B)$11,000.
• C)$1,000.
• D)$9,000.

Understand the concepts and differences between "make or buy" decisions and the implications of each.

Recognize the importance of and methods for building strong supplier relationships and the role of suppliers in product design and quality control.

Differentiate between procurement and strategic sourcing and understand the strategic sourcing process.

Identify the advantages and disadvantages of e-procurement and e-sourcing.

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Definitions:

Compound Interest

The accumulation of money that builds over time in an investment or interest-bearing account as new interest is earned on previous interest that is not withdrawn.

Time-Value

The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Forgo

The act of giving up something, often as a sacrifice, in preference for something else considered to be of greater value.

Monetary

Relating to money or currency, typically involving the management, transfer, or creation of money.